You would expect a bond of an eastern european government to pay interest rate as compared to a bond of the u. s. government. you would expect a bond that pays the principal in year 2040 to pay interest rate as compared to a bond that pays the principal in year 2020. you would expect a bond from coca-cola to pay interest rate as compared to a bond from a software company you run in your garage. you would expect a bond issued by new york state to pay interest rate as compared to a bond issued by the federal government.